Multiple Choice
Debbie's Cookies has a return on assets of 12.6 percent and a cost of equity of 14.8 percent.What is the pretax cost of debt if the debt-equity ratio is .38? Ignore taxes.
A) 5.87 percent
B) 95.29 percent
C) 9.04 percent
D) 7.31 percent
E) 6.81 percent
Correct Answer:
Verified
Correct Answer:
Verified
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